§1What this business is
Paraffin wax and microcrystalline wax are melted in a jacketed vessel, white oil (liquid paraffin) is stirred in, and the mass is cooled, tested and packed. The jelly goes into creams, ointments, lotions, toilet soaps and anti-rust uses. Pharma-grade jelly must meet IP, BP or USP standards.
Capacity: 0.5 tonne a day, 150 tonnes a year; year 1 at 60%. Formula: paraffin wax 20%, microcrystalline wax 20%, white oil 60%.
§2Is it right for you?
Who it is for
A chemist or someone from the cosmetics or pharma trade who can run a GMP-compliant unit.
Who it is not for
Someone not ready for drug-controller inspections and detailed record-keeping.
Advantages
- Simple melt-and-mix process
- Used in creams, ointments, lotions, soaps and anti-rust coatings
- Low power need (7 HP)
- Strong debt cover (DSCR 4.12) in the report
Drawbacks
- Cosmetic and pharma grades need strict quality control (IP/BP/USP)
- Regulated under the Drugs and Cosmetics Act
- Raw material is about 75% of sales
- Big brands dominate retail packs
Skills you need
- Wax and oil blending
- Quality testing to IP/BP/USP
- GMP documentation
- Selling to cosmetic and pharma makers
Why difficulty 4/5: Simple chemistry but heavy regulation and quality control.
§3Market
Who buys
- Cosmetic makers (creams, lotions)
- Pharmaceutical makers (ointments)
- Toilet-soap makers
- Lubricant, grease and anti-rust users
How it sells
- Direct bulk sale to manufacturers
- Own-brand packs through chemists and general stores
Good to know
- The report is written for white petroleum jelly for cosmetics and pharmaceuticals, and says strict quality control is needed.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Cylindrical aluminium jacketed reaction vessel | 2 | ₹3,00,000 (₹1,50,000 each) |
| Aluminium storage vessels, 250 kg each | 4 | ₹4,40,000 (₹1,10,000 each) |
| Motor and stirrer | 1 | ₹50,000 |
| Quality assurance and quality control equipment | 1 lot | ₹2,00,000 |
From: PMEGP sample project report — Petroleum Jelly (prepared by Udyami/Samadhan)
- Paraffin wax30 tonnes a year at ₹70,000 a tonne (full capacity)
- Microcrystalline wax30 tonnes a year at ₹1,20,000 a tonne
- White oil (liquid paraffin)90 tonnes a year at ₹85,000 a tonne
From: PMEGP sample project report — Petroleum Jelly (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- Udyam
- GST
- Manufacturing licence from the State Food and Drugs Control Authority (the report cites CDSCO, FDCA, Schedule M and GMP)
- State Pollution Control Board consent
- WHO-GMP and a Certificate of Pharmaceutical Product (CoPP) for exports (report)
§6Schemes & subsidies
PMEGP (report is a PMEGP sample); CGTMSE for collateral-free credit. The ₹25 L cost is above the MUDRA limit.
§7Money
How the investment is worked out: Samadhan report: building/shed 1,000 sq ft ₹3.00 L, plant & machinery ₹9.90 L, furniture ₹0.50 L, pre-operative ₹0.43 L, working capital ₹11.18 L = ₹25.00 L. Land 2,000 sq ft rented or owned.
Working capital: ₹11.18 L, bank finance ₹10.06 L.
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Crude-linked raw-material prices
- Failed quality tests
- Licence compliance
- Credit to buyers
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working white petroleum jelly unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start White Petroleum Jelly?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.